• The Open University

Corporate Finance: Raising finance and capital structure

In this course, you will learn how the financial structure has an impact on the business.

Finance planning meeting

  • Duration

    5 weeks

  • Weekly study

    14 hours
Overview
Requirements

Understand why companies borrow cash and the impact of that decision

This course looks at the role of debt, how to estimate the rate of return required by lenders to a company, capital structure and the weighted average cost of capital (WACC). It gives examples of how important the cost of capital is to organisations, whether in the public or private sector (e.g. helping regulators to set the levels of phone charges, or companies decide how much to pay for an acquisition). Then we explore another major financing issue for companies – dividend policy – by discussing the ‘bird-in-the-hand’ theory, dividends and taxation, agency theory and signalling theory.

What topics will you cover?

  • Capital structure and WACC
  • The costs of debt and equity
  • Dividend policy
  • How to raise finance

Learning on this course

On every step of the course you can meet other learners, share your ideas and join in with active discussions in the comments.

What will you achieve?

By the end of the course, you‘ll be able to...

  • Calculate the WACC for an organisation.
  • Explain and analyse issues underpinning the use of the WACC model.
  • Assess the role of dividends and how this has changed over time.
  • Evaluate a range of dividend policy theories.
  • Develop an understanding of debt finance and debt markets.

Who is the course for?

This course is aimed at everyone who works in areas such as investment banking, portfolio management, corporate finance, treasury, law and consultancy.

What software or tools do you need?

A computing device with a browser and broadband internet access is required for this module. Any modern browser will be suitable for most computer activities. Functionality may be limited on mobile devices.

Any additional software will be provided or is generally freely available. However, some activities may have more specific requirements. For this reason, you will need to be able to install and run additional software on a device that meets the requirements below.

A desktop or laptop computer with either an up-to-date Windows or macOS.

The screen of the device must have a resolution of at least 1024 pixels horizontally and 768 pixels vertically.

To join in the spoken conversation in our online rooms we recommend a headset (headphones or earphones with an integrated microphone).

Who developed the course?

The Open University

As the UK’s largest university, The Open University (OU) supports thousands of students to achieve their goals and ambitions via supported distance learning, helping to fit learning around professional and personal life commitments.

  • Established

    1969

  • Location

    Milton Keynes, UK

  • World ranking

    Top 510Source: Times Higher Education World University Rankings 2020

Learning on FutureLearn

Your learning, your rules

  • Courses are split into weeks, activities, and steps to help you keep track of your learning
  • Learn through a mix of bite-sized videos, long- and short-form articles, audio, and practical activities
  • Stay motivated by using the Progress page to keep track of your step completion and assessment scores

Join a global classroom

  • Experience the power of social learning, and get inspired by an international network of learners
  • Share ideas with your peers and course educators on every step of the course
  • Join the conversation by reading, @ing, liking, bookmarking, and replying to comments from others

Map your progress

  • As you work through the course, use notifications and the Progress page to guide your learning
  • Whenever you’re ready, mark each step as complete, you’re in control

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